According to The Wall Street Journal, Apple told its two component assemblers -- Pegatron Corp. and Hon Hai Precision Industry Co. -- to cut shipments of the iPhone 5C in Q4 2013. More specifically, Pegatron is to cut orders by less than 20 percent and Hon Hai is to cut orders by a third.

In response, Hon Hai has stopped hiring additional workers to produce the iPhone 5C. A parts supplier received a 50 percent cut in orders for iPhone 5C parts, which likely means an inventory reduction by assemblers.

Some worry that the cut in iPhone 5C orders means lower-than-expected demand for the device. Analysts have said that the 5C was supposed to be a budget phone that would reach a broader audience -- for instance, the Chinese market where customers don't have subsidized pricing. While analysts expected a $350 phone, the 5C ended up being $550 (only $100 less than the flagship iPhone 5S).

But it doesn't look like Apple is hurting over the cut in iPhone 5C orders. In fact, it upped iPhone 5S orders with its suppliers and saw a rise in its stock this morning.

Apple shares opened 0.8 percent higher today, sending the company's shares to a one-month high above $502. Analysts say the boost is due to customers deciding to pay the extra $100 for the iPhone 5S, and that the device has seen significant sales since its September launch.

Apple released the iPhone 5S and iPhone 5C last month. The 5S runs $199/$299/$399 for 16GB/32GB/64GB respectively with a two-year contract, or $650/$750/$850 without a contract. As for the 5C, it runs $99/$199/$299 for 16GB/32GB/64GB respectively with a two-year contract, or $550/$650/$750 without a contract.

It makes you wonder if Apple made the iPhone 5C an intentionally poor value to avoid the problem they had with the iPad Mini greatly outselling the iPad. It works out well for them as they sell more top-end phones this way.

It doesn't make sense to me that it would be intentional. Apple's cutting and increasing orders in the past seemed to hit the news and I'm sure news of component and production cuts are never something that Apple would wants in the media.

That said, I'm sure that Apple marketing is aware that if you have the money to spend on an Apple phone, you probably have another $100. Kind of confusing!

I think it's plausible to assume the 5c was designed to fail. After all, why the hell would anybody buy it over the 5s when you're already spending so much money in the first place.

It's the same problem Toyota is having selling the Prius C. It's priced 8% lower than the Prius while being more compact, cheaper feeling with less features and negligible difference in fuel economy. No wonder the Prius still outsells it 6:1.

After all, if people wanted a cheap iPhone, they're better off picking up the original iPhone 5 (which is identical to the 5c internally, made out of premium materials, and ironically less expensive!)

quote: If, as I suspect, next year’s high-end model comes with a larger screen (with the mid-tier model staying the same size), developing the capability to manufacture different models will be particularly forward-thinking. Apple is teaching itself to manage two relatively similar lines before they branch out into even more significant segmentation.

Make sense. In order to make something more precious, there should be something to compare.

In this case, it does make sense Apple intentionally get iPhone 5C a cheap look and still persist it is a great product while cranking up sales of 5S. Which one consumer, choose it is profitable, but with this psychology war, Apple get a greater margin because who wants a cheaper feel when you have shelled out so much money and can get the FLAGSHIP for just another $100 ?

Hell, look at the iPhone 4 to 5s. 3 years later and all it has is a faster processor, slightly bigger still tiny screenand an insecure fingerprint reader. Same huge Bezel, same huge list of missing features.